Real Estate Investor Magazine South Africa October 2013 | Page 33

RESIDENTIAL
tenant’s shoes, you can buy a property that will
appeal on the rental market and ensure that you
never sit with a vacant investment property.
While property remains a vital part of an
investment portfolio, it is very important to note
that it is a long-term investment. The length of
time you hold onto a property before selling it
will be a key element to building personal wealth.
Residential property and buy-to-let property
remain a great investment in your future and a
fantastic way to get that second income!

What do the experts say?
John Roberts, CEO, Just Property Group
In my opinion, the factors any investor in property
should consider are the following:
Area: where do I want to invest and why?
Consider the history of rental returns in the
area, the location of the property and how the
surrounding environment will impact on the
desirability of the property for your target market.
Who is my target market: students, first time
homeowners, lower or higher end of the market?
Property management: will I manage the
property privately or will I use an agency. This has

a substantial effect on return on investment.
What’s happening in the surrounding area?
infrastructure changes, new schools or shopping
centres.

Dr Andrew Golding, chief executive of
the Pam Golding Property group
What sets a successful residential investor apart?
Have patience – and do your homework! Research
the market carefully, be patient and make a
considered purchase decision based on all of the
above-mentioned factors, and ensure that your
property acquisition (in the instance of a buy-to
-let investment) is within your budget and that you
can afford the bond repayments should you find
yourself without a tenant for a period of time.

Samuel Seeff, Chairman, Seeff
Top 3 most important factors to investing:
Location, location, location
- buying in the right area, but more importantly
buying the right property in the right area.
Knowledge and information
- it is vital that investors do their homework and
arm themselves with knowledge about the areas

that are in demand, both from a buyer and rental
perspective.
Wisdom of patience
- smart investing requires knowledge and, above
all, the wisdom of patience to ensure your asset
grows in value and to know when the right time is
to sell to yield the best profits.

Adrian Goslett, CEO of RE/MAX
The first element that an investor should consider
is their return on investment, not just capital
appreciation or return, but also operational return
or rent that can be generated. An investor makes
his profit when he buys not when he sells. In
other words, he will only pay what the property is
worth to him and not necessarily what the market
suggests. There is no emotional attachment and
therefore it is easier to walk away.
A savvy investor will also spend much of his time
scrutinising the creditworthiness of the tenant,
whether they are existing tenants or new.

RESOURCES
Just Property, RE/MAX, Seeff, ooba